Orion Health will pay up to $144.6 million buying back shares from investors in the healthcare technology firm that struggled to achieve the big aspirations it had when it went public four years ago.
The firm will pay $1.224 a share, around the mid-point of its last estimated range to $1.20-to-$1.25. Shareholders can opt to hang on to some or all of their shares, with Orion Health offering to buy 20, 50 or 100 per cent of an investor’s stake. Chief executive Ian McCrae will sell 20 per cent of his holding.
The buyback formed a component of Orion’s wider transformation, in which it sold its profitable Rhapsody unit to UK private equity firm for $205 million, diluted its holding in the population health management division and retained full ownership of the hospitals unit.
“The board has considered Orion Health’s available cash immediately following completion of the Hg transaction, taking into account transaction costs and working capital adjustments in relation to the Rhapsody sale, and the ongoing requirements of Orion Health’s hospitals business,” the company said in a statement.
